On April 1st, 2019, the federal carbon tax pricing system will be implemented in the Province of Ontario. The Greenhouse Gas Pollution Pricing Act (GHGPPA) becomes law and all fuel distributors and carriers need to review the Act and information as this Carbon Tax differs from Ontario’s Cap and Trade Program that ended last July.

  

Primarily, the distributor or carrier must clarify if they need to register, and if they find it’s required which, in most cases it will be, the distributors and carriers need to complete the registration as soon as possible.


Information on the registration process can be found at:

www.canada.ca/en/revenue-agency/services/forms-publications/publications/fcn1.html

www.canada.ca/en/revenue-agency/services/forms-publications/publications/fcn2.html


L400-1 Fuel Charge Registration Schedule under the Greenhouse Gas Pollution Pricing Act

Registration Forms for Distributors can be found at:

www.canada.ca/en/revenue-agency/services/forms-publications/forms/l400-1.html

L400-2 Fuel Charge Registration Schedule - Road Carrier under the Greenhouse Gas Pollution

Registration Forms for Carriers can be found at:

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l400-2.html


There are businesses that may apply for exemption of the Carbon Tax. For example Ontario farmers can receive fuel without the Carbon Tax Charge for use in trucks, tractors and other farm machinery by providing and Exemption Certificate to their supplier.

Having an accurate inventory as of April 1st will be importance as Carbon Tax will have to be paid on all the fuel you have on hand as of that day.

The Federal Government is suggesting they will have public information sessions called “Outreaches” in the near future, however none are scheduled at this time and we are just 2 weeks away.

Questions can be directed to the Excise Tax Department of CRA @ 1-866-667-9851

Please find the complete Act at:

https://laws-lois.justice.gc.ca/eng/acts/G-11.55/

And additional information at:

www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollution-how-it-will-work/ontario.html